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Endeavor Swings to Small Profit in First Quarterly Earnings

Ari Emanuel-led company saw its revenue dip slightly

Endeavor released its first quarterly earnings as a public company on Wednesday.

Although revenue for the Ari Emanuel-led company was down slightly — $1.07 billion compared to $1.19 billion the pre-pandemic year-ago quarter — Endeavor posted a small profit of $2.4 million. A year ago, the company took a loss of $51.3 million, contributing to losses of $1.2 billion over the past two years.

Revenue is expected to be between $4.76 and $4.83 billion and Endeavor expects to reduce its massive debt burden — $5.9 billion as of March 31 — by $600 million by the third quarter of this year.

Endeavor’s profit was driven solely by its sports properties, including the UFC, of which Endeavor is acquiring full control. That segment’s revenue increased by 22% to $283.5 million, while its live events and representation business both decreased compared to a year ago. The events business dropped 19.3% to $539.6 million and representation was down 15% to $248.9 million.

Endeavor went public on April 29 and raised more than $500 million, with an additional $1.7 billion in private placement, the latter of which was used to fund its UFC buyout.

Endeavor’s stock price closed Wednesday slightly higher ($29.39) than it’s opening ($29.12).

“As we emerge from the pandemic, we are witnessing strong demand for all forms of content,” remarked Ariel Emanuel, CEO, Endeavor. “Our company was purpose-built to fulfill this demand on a global scale – be it live events and experiences or premium on-screen content. While our first quarter results were still negatively impacted by COVID-19, we are well positioned to benefit from the pent-up demand for content, while maintaining our long-term focus on secular trends and high-growth areas that have been both validated and amplified by the pandemic.”

On Wednesday, the International Olympic Committee (IOC) named Endeavor-owned On Location as the global hospitality provider for the Olympic and Paralympic Games, covering three Games, beginning with Paris 2024.

Endeavor president Mark Shapiro told TheWrap on the day of the IPO that they were committed to taking the long view on their stock performance. “It’s not about one day or this week or two weeks,” he said. “This is a long game. And we’re very much focused on that.”